Winter 2014-2015 Volume 72 LEE V

BELLTEL RETIREE The Official Newsletter for Union and Management Retirees and Employees of Bell Atlantic, GTE, Idearc/SuperMedia/DexMedia, NYNEX, MCI, Verizon and its Subsidiaries. Paid for by contributions from Verizon and Idearc/SuperMedia/DexMedia retirees.

Winter 2014-2015 Volume 72 LEE V. VERIZON LITIGATION UPDATE Recalling the Miracle By Curtis L. Kennedy, Esq. Below is an update written for the on Second Avenue members of the Association of BellTel he 2nd Avenue disaster was the York City Firefighters and 16 hours to Retirees Inc. largest loss of telephone service extinguish. Over 235 firefighters were Lee, et., al., v. Verizon Communi - from fire in the United States injured as the huge blaze practically cations Inc. – Now before the Federal T history, until the World Trade Center shut down the parts of the city with its Appeals Court. was attacked on September 11, 2001. dark smoke clouds, closing nearby On August 4, 2014, the opening What began as a major catastrophe, Stuyvesant High School and forcing appellate brief was filed in the New turned out in the end to be somewhat patients at the New York Ear and Eye Orleans federal appeals court in the of a victory for the “get it done atti - Infirmary to be evacuated. case of Lee, et., al., v. Verizon Commu - tude” of the Bell System workers. “It’s unbelievable. It’s like a movie. nications Inc. , which case concerns Ver - On February 27, 1975, there was a It’s the fire in the phone company izon’s transfer of 41,000 management major 5-Alarm fire at New York Tele - down there. It’s a very smoky fire. The retirees out of the company’s pension phone’s Second Avenue building in smoke extends all the way down to plan into a group insurance annuity the center of New York City. The Queens,” said radio journalist George sponsored by The Prudential Insurance building housed the main distribution Meade- who was reporting from a hel - Company of America. frame that served customers in lower icopter above the disaster site. The transfer of the retirees was not Manhattan and Brooklyn. With the Once the fire was controlled, the in the best interests of the retirees who 40 th anniversary of that fire approach - true scope of its damage to the New had no say in the matter. As a result of ing, we thought it would be important York telephone system was revealed. A being transferred out of the pension to recall the hard work, sacrifice and 300-block area was left isolated with - plan, the retirees have lost all federal valiant effort put forth by many thou - out any phone connections at all. The protections and federal rights, are now sands of telephone industry employees first two floors of the 2 nd Avenue Bell subject to differing and inferior state who managed to get more than Building were destroyed, ruining the laws, and they must exclusively depend 170,000 affected customers phone entire main distributing frame, 31,000 upon the fortunes of a single insurance lines restored in record time. With a switches, and 208 cables in the vault company. History has proven that no herculean effort, a project that would single insurance company is too big to typically require up to two years of (Continued on page 6) fail. work, was accomplished in just three Verizon stands out as the lone busi - weeks. ness entity within this country that nei - We present the “Miracle on Second ther consulted with its retirees nor Avenue:” allowed them a choice when making a It was a disaster that struck cus - decision to transfer retirees out of a tomers of the New York Telephone defined benefit pension plan into an Company, but the disaster response was insurance annuity. Verizon’s expulsion massive and on a national scale by oper - of retirees from an ongoing pension ating companies and their staff from all plan is unprecedented. across the U.S. It was a nationwide Not only did Verizon violate the effort on the part of The Bell Company rights of the management-classified and Western Electric to get the phones o retirees when the corporation transferred c s i c

across key parts of New York City to f

$7.5 billion in liabilities to Prudential, o

y

buzz again. s e the company used an additional almost t r

The five-alarm fire took 700 New u o

(Continued on page 5) C 2 BellTel Retiree Winter 2014-2015

pieces of federal legislation, one in the U.S. Senate and another in the House of Repre - sentatives were recently achieved and this is something you are certain to hear more about in the new year when our pro-retiree legislation will be reintroduced. In fact that legislative advocacy on behalf of retirees was recently recog - President’s Message nized in a feature story pub - by C. William Jones lished in both The Atlantic BellTel leaders Jack Cohen and Jack Brennan. and National Journal . s the year closes, we have a lot to This year your Association was again I am also thankful to say that I will be proud of and some ongoing successful in achieving improved share - stay on as President Emeritus and con - concerns to be mindful of as owner protections via the Verizon share - tinue serving as the ProtectSeniors.Org A owner proxy, as the company agreed to Chairman of the Board. It has been a well. Throughout 2013 and 2014 we have implement the terms of two of our pro - very exciting and fulfilling eighteen years made progress through face-to-face and posals into its bylaws. Over the years leading this organization. Your support written communications with Pruden - your Association has passed three impor - over these years has been wonderful. tial, which now oversees the pension tant proxy bylaw changes winning a Speaking of support, I cannot let this assets of 41,000 of our members. In majority share vote, with eight more opportunity pass without thanking the recent weeks several more major U.S. proxy changes that the company negoti - tens-of-thousands of retirees that have corporations including Motorola and ated off the ballot with us. Because of entrusted us with your hard-earned Bristol-Myers Squibb have sold off their these efforts, our Association is recog - money and faith. As the year 2014 retirees’ pension assets to Prudential. nized as the most successful shareowner comes to a close, I will make one more This is yet another sign that retirees advocacy group in the nation. plea for contributions. need to continue their vigilance and On the litigation side, our attorney, We, presently, are trailing 2013 in active advocacy to protect our collective Curtis Kennedy, has filed the final brief terms of contributions. I know that economic futures. in the Federal Appellate Court for the many of our members like to make that We will see some new documents on Lee v. Verizon case. This is the final step tax-deductible contribution in Decem - Prudential’s web site, that will address in this case and we hope that the three- ber. So I call out to those great, gener - the concerns of our retirees who were judge panel will find in our favor. It will ous contributors to make your dona - transferred out of the Verizon Pension probably be three or more months tions to our Association as generous as Plan and into an annuity held by Pru - before the hearing. We will notify possible. I am also reaching out to dential. These documents were a col - members when that date is fixed. everyone else to consider an additional laborative effort to provide helpful At the end of this year, I will be retir - contribution. As a professional fund- information to annuitants. The Associ - ing from the position as President & raiser once told me when I was Chair - ation web site will have a link to the Executive Director of our Association. man of a YMCA in Maryland, “give Prudential web site. At the same time, The growth and achievement of this until you are proud!” Prudential has been working with our organization has meant so much to my Thank you all for your support and attorney to help develop model state fellow retirees and me. It is why I am friendship and here’s to an even stronger legislation to replace important retiree delighted to inform you that following 2015 for our Association and our mem - economic protections that were lost by an election by the board, our Associa - bership. the transfer. Our legislative partner, tion’s longtime Chairman Jack Bren - ProtectSeniors.Org, will be working nan will step into the position as Presi - hard to push this new state legislation dent and Executive Director and our — Advertisements — longtime Executive Vice President Jack All representations made in adver - and you can help when the time is right. tisements are solely the responsi - ProtectSeniors.Org has also made Cohen will assume the Chairmanship of the board, resulting in a seamless bility of the advertiser. The Asso - progress in federal legislation that will, if ciation of BellTel Retirees is not passed, add new federal laws giving organizational transition. The three of us have been working closely with the responsible for any such represen - more protections for retirees’ earned tations. The Association does not healthcare and other benefits. Two new board on strategy and priorities for 2015. endorse any advertiser. Winter 2014-2015 BellTel Retiree 3 80% Medicare Eligible Management Retirees Give Healthcare Feedback By Jack Cohen than one-third of respondents still have They acknowledge that they have run he Association of BellTel at least one medical provider that will into provider issues. However, they Retirees recently conducted a not accept the plan. Providers that are insist that there is: “nothing in the Tsurvey about the many problems not accepting the United Healthcare design of the plan that prevents a mem - our management retirees have experi - Group Medicare Advantage PPO gen - ber from seeing any doctor that accepts enced with the new United Healthcare erally had no issue accepting the plan Medicare.” Essentially, if a doctor Medicare (UHC) Advantage Group prior to Jan 1, 2014. accepts Medicare there is no reason for Plan PPO. The Association has appealed to Ver - the doctor or hospital to deny this Beginning in 2014, eighty percent of izon to meet and discuss these concerns PPO. Verizon anticipates less problems our management Medicare-eligible but the company has refused. in 2015. retirees were placed into this healthcare In the fall of 2013, UHC announced • Verizon has been very cooperative plan with no other viable option their plan to d rop thousands of doctors in handling complaints forwarded offered. Since then we have compiled as well as many hospitals from their to them from our office and have Medicare Advantage Plans. been attentive to problems brought Are you covered by the “UnitedHealthcare Regardless, Verizon still up. Examples include: negotia tions Group Medicare Advantage (PPO),” rolled out by chose to roll out the United (Continued on page 10) Verizon on Jan 1. 2014? Healthcare Group Medicare Advantage PPO, claiming an easy transition. At least Members Share Experience one-third of those in the with UnitedHealthcare plan are still encountering Medicare Advantage problems. he Association of BellTel Retirees Why did Verizon roll recently conducted an online out this plan for Medicare T eligible retirees when it had member survey about the United - so much negative notoriety Healthcare Group Medicare Advan - an abundance of “horror stories,” sent in the press months before it was rolled tage PPO rolled out by Verizon in Jan - to our office including those of our own out? What was Verizon's motivation uary 2014. Board Members, including Association knowing that so many retirees would be Here is what member’s had to say: President Bill Jones. Many reported forced to change providers that had • 80.17% of the management problems have since been resolved been treating them for many years? I retiree respondents said they are through our intervention and coopera - leave it to you to speculate on Verizon’s covered by the UnitedHealthcare tion from Verizon H.R. and UHC. reasoning behind continuing to support This survey helped provide a clearer this Group Medicare Advantage PPO Group Medicare Advantage PPO; picture on the volume and complexity in the face of such adversity. • 19.83% are not; of problems. • Verizon’s posture is: “When we • 94.77% have used their insurance The online only survey, resulted in receive issues, we review them carefully card with doctors & providers nearly three thousand responses show - and then take appropriate action with that they previously patronized; ing that some 80% of our management UHC.” They encourage our retirees to • 5.23% have not; retirees are part of this new plan. More report issues to the Verizon H.R. office. • 31.72% say that their provider, whom they used in the past, reject - ed the plan at least 1-3 times ; OUR MISSION: • 6.03% say that this plan was The Association of BellTel Retirees Inc. is dedicated to promoting rejected more than 3 times; the protection and enhancement of the pensions and benefits for all • 62.25% say that there was no retirees and beneficiaries of the companies and subsidiaries that make problem when they presented up the Verizon and Idearc/SuperMedia/DexMedia Corporations. their new insurance plan; The Association will convince the company to properly care for its • As of today, 76.69% say their thousands of dedicated former union and management employees. medical providers accept the plan; The Association will conduct activities designed to educate elected • 23.31% say their medical federal, state and local representatives and promote the passage of leg - providers still refuse to accept the islation which will protect and guarantee, rather than invade our plan; hard-earned pension and benefits fund. The survey had 2,767 members participating. 4 BellTel Retiree Winter 2014-2015

2015 Retiree Meeting April 21 in Dover Downs, Delaware Association Stands United With FairPoint Union Workers ontracts for members of the CInternational Brotherhood of Electrical Workers and Communi - cation Workers of America working for FairPoint expired on August 2, 2014. Approximately 2,000 work - ers walked off the job on October 19, and as of news deadline no negotiations have been held since. Dover Downs will be the location of the 2015 Association member meeting. The Association of BellTel he Association of BellTel Retirees Association of BellTel Retirees. Entrance Retirees has a long history of stand - Twill hold its 2015 member meeting tickets and directions will be mailed to ing united with all workers, union in Dover, Delaware. We ask you to you closer to the event date. and management. save the date and plan to attend and par - Please note that hotel reservations At this time the Association of ticipate. The meeting will take place at and event reservations are separate, and a BellTel Retirees member popula - Dover Downs Hotel and Casino on reservation to one is not to another. tion is about 50% former union Tuesday, April 21. All members must register with the workers and 50% former manage - Reservations are needed if you want Association to guarantee a spot at the ment. We have said from the very to attend the 2015 Association of Bell - meeting. beginning in 1996, that we repre - Tel Retirees meeting. Members wishing for overnight acco - sent all retirees regardless of their To reserve a seat for the meeting, modations can reserve hotel reservations affiliation. please complete and send the early at a special rate of $129 plus taxes and Association President and Execu - RSVP form below. Be sure to include fees per night. tive Director C. William Jones said, the names of all those attending and Please give the reservation desk the “We hope that negotiations will return it with your $5 per person regis - code GBTEL15 when booking. You can commence and an agreement can be tration fee to Susan Donegan, c/o the also visit their website at www.dover - hammered out soon. However, the Association of BellTel Retirees, P.O. downs.com. The hotel reservation cut- Association asks its members to Box 33, Cold Spring Harbor, NY off date is March 20. honor picket lines and decline 11724. We look forward to seeing you in requests to work should FairPoint Please make all checks payable to The Delaware on April 21, 2015. ask for your help.”

RSVP for The Association of BellTel Retirees Annual Meeting Tuesday, April 21, 2015 at Dover Downs Resort & Casino, Dover, DE.

A Ticket Is Required To Attend

I will attend the meeting in Dover, DE- # in party______

Name:______Address:______

Phone Number:______Email Address:______Enclosed is a Check for $______( $5.00 per person ) Please list your guest’s names and addresses:______PLEASE PRINT CLEARLY (You can list invitees names on a separate piece of paper if more than 2 are attending) A ticket will be mailed to each member and guest for admission. Please return this registration form and fee ASAP to: Association of BellTel Retirees Inc. c/o Susan Donegan / P.O. Box 33, Cold Spring Harbor, NY 11724 Winter 2014-2015 BellTel Retiree 5

LEE V. VERIZON LITIGATION UPDATE ERISA law that will have repercussions (Continued from page 1) on retiree pensioners throughout the nation. $1 billion of pension funding to pay The Association will continue to expenses to carry-out the transaction, provide updates and announcements expenses that should have been charged about the Lee case, as well as other legal to corporate operating revenues, not proceedings for the benefit of retirees, charged to the pension plan. which matters are being championed by Since the switch involved a retire - the Association. ment plan, the only applicable law and basis for any legal challenge is the feder - al law, Employee Retirement Income Security Act (“ERISA”). The ERISA claims asserted in the Lee case are novel. Never before has any Curtis Kennedy, Esq. addresses Asso - group of retirees pursued any similar ciation of BellTel Retirees members. Association of BellTel Retirees Inc. type of legal challenge. Therefore, unITed, To pRoTecT ouR FuTuRe when leaders of the Association of Bell - their own appellate brief on September Tel Retirees Inc. decided to support the 22, 2014. Afterwards, the Association Published by: Association of BellTel Retirees Inc. legal challenge against Verizon and Pru - filed an appellate’s reply brief on Octo - P.O. Box 33, Cold Spring Harbor, dential, it was readily known that the ber 6, 2014. Now both sides await New York 11724 • (631) 367-3067 federal court case of first impression notice from the Appellate Court on website: www.belltelretirees.org would not be resolved at the lower when the case will be scheduled for an E-mail: [email protected] court level, but was destined for the fed - oral argument hearing before a 3-judge Hotline: (800) 261-9222 A 501 C3 IRS tax-exempt corporation eral appeals court and, perhaps, the panel to decide the case. This could be Circulation Exceeds 130,900 United States Supreme Court. several months from now. The 78 total page informative appel - At press time of the newsletter, no President and Executive Director: late brief, is posted at the Association’s decision had been made. Once received, C. William Jones (410) 310-8533 Senior Staff Manager website: http://www.belltelretirees.org/i a hearing date will be posted on the Susan Donegan (631) 367-3067 mages/August_4_2014.pdf Association’s website. The Lee case is being closely moni - Assistant Manager The appellate brief gives a summary Stef Baker (631) 367-3067 of the proceedings before the trial tored by corporate pension sponsors, Board of Directors: court, reports the essential facts and pension fund managers, the annuity John M. Brennan, Chairman contains the arguments on the merits of insurance industry and ERISA legal (201) 666-8174 the four separate claims asserted in the professionals throughout the nation. Jack K. Cohen, Executive Vice President case. Verizon’s team of lawyers filed Indeed, the case will develop federal (914) 245-3129 Eileen T. Lawrence, Chief Financial Officer (718) 229-6078 Robert Gaglione , Treasurer (516) 676-0937 Recover Investment Losses! Pamela M. Harrison, Secretary • Pension Buy-Out funds invested & lost? V.P. Union Relations (845) 225-6497 Donald R. Kaufmann, Director (717) 398-2423 • Stockbrokers mismanaged your money? David J. Simmonds, Director (732) 636-4847 • Let me help you! Charles F. Schalch, Director (610) 399-3626 John Studebaker, Director (610) 296-0281 (Cases on contingency basis only) John W. Hyland – Director (845) 490-0713 We have many satisfied BellTel Retirees as clients & Thomas M. Steed – Director (914) 213-5909 Louis Miano, Director Emeritus (781) 444-8080 have effectively retrieved hard earned pension $$$ Robert A. Rehm, Director Emeritus (516) 827-0801 lost carelessly. HAVE A QUESTION? Call 800-261-9222 or Debra G. Speyer, Esq. who represents Email: [email protected] Bell Retirees nationwide. 1-800-510 STOCK Advertising Information www.wallstreetfraud.com (631) 367-3067 6 BellTel Retiree Winter 2014-2015 Recalling the Miracl unthinkable feat, since during that working conditions, with hundreds of time a project of that size could take men crammed elbow to elbow in the up to two years. tight space. However, they pressed on The first order of business was to to get their jobs done. send a team of Bell Lab scientists in to “It’s so crowded down there that if assess damage and offer solutions as to you get up for a minute, everybody how to salvage and clean equipment, takes one more inch of elbow room fix structural damage, switch transmis - and the space you were working in sion power, and reroute calls. closes up like a trap door,” reported After an action plan was quickly splicer John Bliefernich. made, it was a nationwide effort Another major project was securing y n a

p between The Bell System and Western a main frame, which would typically m o

C Electric to repair the damage. Within take six months to build. However, e n o hours of the fire, 4,000 workers were one was found and rerouted from Cal - h p e l e brought in from across the state and ifornia to Manhattan. The 32,000- T k r

o from operating companies throughout pound machine was shipped on three Y nd w

e the country to repair the 2 Avenue charter flights to New York. Though it N e building. New York Telephone typically took weeks to secure a frame, h t f o splicers, linemen, building engineers, the massive and driven workforce y s e t r and supervisors worked hand and installed it within a day. u o c s

o hand with Western Electric installers, Throughout the upcoming weeks, t o h p

Bell Lab technicians, and the Empire Western Electric would ship 3,000 l l A City Subway Company and so many tons of equipment and material. This (Continued from page 1) more industry professionals. included 525,000 linear feet of The clean up effort demanded exchange cable and 380 million con - were charred and melted. Four panel thousands of gallons of water be ductor feet of cable and wire. offices were left in ruins, the power removed from the building. Torches “It is astounding. It boggles the plant was gone, and the carrier center were used to cut away unsalvageable mind to think the work that goes on was destroyed. equipment, 16 million switch contacts here,” said switchman Ed McCallum. Then New York Telephone Vice and relays were cleaned with cotton President Lee Oberst made the bold swabs dipped in a chemical recom - promise to restore the 170,000 lines mended by the Bell scientists, and over within three weeks. This was an the course of six days, millions of feet of cable were removed from the vault. Within days, water, heat, lights and electric were restored to the building, resulting in a chorus of cheers from the workers. The workers served in 12-hour shifts, 24 hours a day to repair the dam - age, with as many as 2,000 workers at a time working in the building. The vault in particular saw harsh, overcrowded Winter 2014-2015 BellTel Retiree 7 le on Second Avenue amount of work done was astounding: • 6,000 tons of debris was removed after the fire; • 1.2 billion feet of new wire was placed underground; • More than 350 cables with up to 2,400 wires each were placed and spliced in the vault; • More than five million wires were spliced; • 6 million switch contacts and 10 million relays were cleaned; • 8.6 million feet of cross-connect frame wire was run. Also 10,000 truck lines needed to be rerouted, which required the coop - eration of virtually every central office in New York City. Former Bell Company President William Ellinghaus summed up the three weeks perfectly, saying “The whole Second Avenue effort represents a magnificent example of the Bell Sys - tem ingenuity and know-how. We had help from coast to coast. Western The effort caused telephone compa - Electric and Bell Labs specialists were ny workers all over the nation to stop on the scene before the fire was out. their own projects to send their vital This job would normally take 18 equipment and materials to the 13 months or longer. We did it in three Street and 2nd Avenue emergency. weeks.” These workers deserve credit for the The three-week project was so mas - moment for the 170,000 cus tomers left assistance. sive in size and scope that upon its com - without service was the moment their Besides the massive effort to fix the pletion, it was dubbed “The Miracle of nd phone rang for the first time in weeks, phone system, there was also an effort 2 Avenue.” However, the true miracle reconnecting them to the world they on The Bell Company to support were previously isolated from. those who had lost phone lines. 400 To view a video of this historic mobile pay phone units were rolled project, visit out onto city streets and situated http://tinyurl.com/n23gqjy around emergency phones – portable store fronts and sidewalk units- scat - Were you one of the thousands tered throughout 32 locations in the serving during the Miracle on Sec - Lower East Side of Manhattan. An ond Avenue? We want to hear emergency message center delivered from you. Please share your pho - 8,000 messages a week to those cus - tos and memories. Write to us at tomers left without phone service. The [email protected] Bell Pioneers visited the elderly and and at our Facebook page at infirmed who were otherwise isolated https://www.facebook.com/ and unable to leave their homes. associationofbelltelretirees By the end of the three weeks, the 8 BellTel Retiree Winter 2014-2015 PBGC Wake Up Call Follows BellTel Meeting By Jack K. Cohen the 2015 filing procedures and instruc - uring what seems like a hun - tions to, among other things, require dred years ago, yours truly was reporting of certain undertakings to Dthe Staff Manager of Expense cash out or annuitize benefits for a spec - Budget Development and Implementa - ified group of former employees.” tion, working for the various renditions, It took them a whole year to act which became Verizon. Then, as a mat - based upon our guidance. Evidently, ter of routine in preparation for “next conference call with some key members they have since had a wake-up call in year’s” view of the budget, we would of the Pension Benefits Guaranty Cor - view of current events showing that identify what we called: “Upward Pres - poration and the subject was “Pension there is a major stampede to “de-risk - sures.” Essentially we started with a base De-Risking.” ing.” This is becoming a worldwide epi - line and identified specific initiatives One question this old “budgeteer” demic including GM, Verizon, Rolls and projects that could have an upward had concerns the transfer of 41,000 Royce, BMW, British Airways, Akzo pressure on our proposed budget for the management retirees that would result Nobel, Aviva and most recently Corporation to provide funding, (e.g. in a loss of $1.7M each month in PBGC Motorola. for hosting a Democratic or Republican revenue from Verizon. Your Association has been actively Convention). It always seemed to me, Wouldn’t this have a traumatic impact pursuing federal legislation to preserve and other Telco trained “budgeteers” on their income projections relative to some of the ERISA protections lost dur - that this was a sensible way of making their budget for the coming year? At this ing the metamorphosis of our earned sure that surprises did not become time the PBGC felt “this did not consti - pensions into group annuities. We need nightmares during the following year. tute a ‘reportable event’ and advance YOU to make sure that your State and Back in October of 2013, Bill Jones, notice to the PBGC was not required. ” Federal elected officials hear from you in Jack Brennan, Eileen Lawrence, Jim Yet one year later in a Sept. 29, 2014 support of our efforts. Stay tuned and Casey, Special Legal Counsel Eddie article in PLANSPONSOR.com it was your financial support will be most Stone and I participated in a high level noted: “The PBGC intends to revise appreciated. Motorola & Bristol Myers Squibb Sell Pensions to Prudential rudential has reached new pension long-term management of retirement obligation agreements with both benefits.” PMotorola and Bristol Myers “Pension liabilities have become an Squibb. This means Motorola will trans - increasing concern for corporations fer $3 billion worth of pensions over to 2014 but have not started receiving ben - around the world,” said Phil Waldeck, Prudential, which will affect 30,000 efit payments. Total lump sum pay - senior vice president and head of Pen - salaried retirees. Bristol Myers Squibb ments will be capped at $1 billion. sions and Structured Solutions for Pru - Co., a biopharmaceutical company plans The Prudential deal and lump sum dential Retirement. “Over the past few to transfer $1.4 billion in pensions which buyout is expected to reduce Motorola’s years, Prudential has been very focused affects 8,000 retirees and their beneficiar - ongoing pension obligations on working with plan ies. by $4.2 billion. The compa - sponsors—like Motoro - Retirees from both companies will see ny also plans to contribute la Solutions—to help the same monthly payments but will no $1.1 billion to its U.S. pen - them reduce pension longer be protected under the federal sion plans in 2014. risk while also providing Pension Benefits Guaranty Corporation Bristol Myers Squibb is retirement security to or ERISA, the federal law. not required to add addi - their retirees.” In addition to the Prudential annuity tional cash contributions. They say Pru - In recent years Prudential also took on option, Motorola plans to allow 32,000 dential “better manages the ongoing vari - 41,000 Verizon management retirees and pension plan participants to apply for a ations in cost associated with its mainte - 76,000 General Motors retirees pension lump sum payment for their accrued nance, while entrusting current retirees obligations in this widening pension vested pension benefits. Eligible retirees and their beneficiaries pensions to a stripping trend. must have left the company before June financial institution with expertise in the Winter 2014-2015 BellTel Retiree 9 Insights for Maintaining a Strong & Effective Protector of Retirees By David Simmonds build membership and unjustly transferred to a failing he Association of BellTel Retirees attract public recognition of company. We’ve been very Inc. has been around since 1996. our various campaigns by vocal in the transfer of 41,000 TNot all the board members have getting our story in the news - retirees to a Prudential annuity. been here that long. But as each board papers and numerous We’ve introduced state legisla - member leaves and another one joins, we national magazines, radio tion to provide some sorely learn something. The board is made up and TV. needed rights in the event of a of both retired management and craft. Because of that lesson we pension transfer and more. This gives us a unique look at what we’ve have hired numerous profes - Powerful companies like Ver - experienced and learned. sional specialists to help us izon, AT&T, Alcatel-Lucent, It has been our good fortune to have with legislation, both federal GM, will do what they want a membership that believes completely and state, litigation, proxy Dave Simmonds with little regard for the wishes in what we do. That has shown in the proposals and nonprofit of the retiree. We’ve seen pen - donations that are so vital to our very accounting law, resulting in considerable sions moved, healthcare erode, and ben - existence. We’ve been able to fight for positive results. We could not have had efits diminish. Looking to the future, all Verizon retirees whenever the call the successes that we have achieved with - it’s not IF it will happen, but WHEN! It arises. out our professionals. seems no one is immune to reduced ben - We learned a very important thing in The money you donate has made all efits. Just because these companies are 1996 that has been big and powerful, does paying dividends OUR 2014 YEAR END GOAL $1M not mean we should for our eighteen just roll over. years. We were try - Generous Contributions to date $770,423 Please give what you ing to come up Additional funds needed by year-end $230,000 can and then give a lit - with ways to build Any amount you can give will help us … and tle more. If you have membership since THANK YOU FOR SUPPORTING OUR VOLUNTEER WORK donated this year we the company would thank you but ask, if it not share the names is possible, to make an and addresses of retirees. We were very that possible. But we have reached the additional donation. Legal and legisla - fortunate to be able to hire a public rela - point where your donations will not sus - tive work is very expensive. We can’t do tions firm to get our messages seen and tain our level of expenditures that must it without you. heard. Of course, we could not afford increase in future years. As retirees you I don’t think you want to look back his monthly fee but he saw the huge are aware that expenses never go down and say “I wish I did more.” Make sure future of our Association and accepted and that includes our fight for your we have the resources to continue to one-half of his fee. rights. fight for what is right. # Butler Associates has helped us to In the past we’ve fought for retirees

ASSOCIATION OF BELLTEL RETIREES INC. P.O. Box 61, Glen Head, NY 11545-0061 Yes, I want to support the Association of BellTel Retirees Inc. in our fight to protect the pensions and benefits of all retirees and active employees. Enclosed is my tax-deductible donation: o Other $______o $100 o $75 o $50 o $36.50 o $30 We appreciate any amount you can donate $______Or use your credit card. Visa MasterCard Credit Card Acct.#______/______/______/______Expiration Date______Three digit code on back of card: ______Name______Address______City/State/Zip Code______E-mail______Telephone #______I am a: Management retiree _____ Union retiree ______Other _____ Company Retired from:______You can also donate online by going to our web-site www.belltelretirees.org and click on the DONATE NOW button. Consider a recurring donation—which is an easy and safe way to budget your contribution . o I am interested in learning more about Planned Giving. Please contact me. The Association of BellTel Retirees Inc. is a 501(c)3 tax-exempt organization representing retirees and active employees of Verizon, its subsidiaries and retirees who were transferred to Idearc/SuperMedia/DexMedia. 12/14 10 BellTel Retiree Winter 2014-2015 Frontier Communications Purchases AT&T’s Dignity Memorial Offering Connecticut Wireline Operations BellTel Members rontier Communi - estimated $1.25 billion in 10% Discount cations purchase of revenue. t one time FAT&T’s Connecti - The State regulatory Aor another cut wireline operations was agency determined the deal we’ve all had to approved by the State of would be in the public be involved in Connecticut’s Public Util - interest and that Frontier the planning of a funeral, generally ities Regulatory Authority for $2 bil - has “the financial, technological and not a happy event and usually far lion. managerial suitability required to pro - too complicated. Dignity Memori - After the deal closes, approximately vide safe and reliable service.” al has ownership of funeral homes 2,600 AT&T employees of the former In 2009, Frontier purchased Verizon all across the United States, and Southern New England Telephone ter - landlines across 14 states. The deal with they have made a special offer to our ritory will become Frontier employees. Verizon made Frontier the largest rural members and their families. For According to the Hartford Courant , the landline company in the U.S. the use of their services they offer acquisition includes 900,000 wired Frontier’s deal with AT&T expands our members a 10% discount and telephone connections, 415,000 inter - Frontier’s reach from 27 states to 28 promise to alert all retiree families net connections and 190,000 video and increases its staff from 13,900 to contact Verizon to see if they are subscribers — operations that have an employees to 17,000. eligible for the Sickness/death bene - fit. not take a referral from the Association Your Association as always encour - 80% Medicare Eligible unless they have been given a first shot at ages our members to judiciously make resolving your issue. their own choices whether to use the (Continued from page 3) If the issue cannot be resolved, please provide our office with a detailed synop - advertiser’s services and whether those between the Main Line Hospitals sis of your problem and we will do our services will be beneficial in their par - outside of Philadelphia and UHC. best to get it resolved with Verizon and ticular situation. Our purpose in That hospital group is now taking UHC. mentioning this is to make sure that our plan. The same is reported We want to make sure all our mem - you are aware of this as a potential with Meridian Hospital Group in bers know that we are aware of the benefit. More information about N.J. If anyone has information to issues and we intend to keep you up-to- Dignity Memorial can be found at: the contrary, please notify our date with developments, while also con - office. www.dignitymemorial.com tinuing to be an advocate on your behalf. • There has been an informational packet prepared to give to providers who refuse to take the plan and this has been successful in many of the cases, including one of our Board Members. • Two-th irds of our management retirees in the Plan have had no problems, please note some retirees did change doctors to be within network. If you still have major problems as a result of this plan realize that you are not alone. One in three management retirees are also experiencing issues but you also have your Association as an advocate. Your Association, by agreement with Verizon must be there as an appeal vehicle, NOT as a “First Responder.” You have to first appeal directly to UHC or Verizon. They will Winter 2014-2015 BellTel Retiree 11 RETIREES NEWS AND NOTES Voices of The Association of BellTel Retirees volunteers seem to have a penchant for Our Members looking out for the needs of seniors. Board Member Don Kaufmann, and Dear Association, his wife Hannah recently lost their Verizon is treating its retirees and beloved pet Sugar, a West Highland current employees as mere “com - Terrier, to cancer. modities.” At first they were not going to look Thank you for treating us as real to adopt another pet. Their daughter, human beings in your never ending however, pointed out they had pets in effort for justice and fairness. the household for 41 years, prompting Enclosed is a “wee” contribution. Hannah to search pet shelters for a Hopefully more members will, at small dog that could be adopted. What least, give their “wee” bit and those they found was a small, white Maltese who can afford it will step up to the mix that needed a home. It was 12 plate! years old and had been put into a shel - Sincerely, ter after its master passed away. Well, If you have news to share or an upcoming E.R.S. one does not usually look to adopt an retiree gathering and would like to invite a older dog, but it seems like a match was member of the Association of BellTel Retirees * * * made in heaven. Friskie has been with Board to speak, please contact the office at 1- Dear Association, Don and Hannah for 4 months now 800-261-9222 or via email at associa - A thank you for all your work on and based on all reports he is getting [email protected]. behalf of retirees including myself! I them trained very well. dread to think where all my Verizon * * * friends would now be without the On October 17, board member John When Donating Please Association. Hyland spoke to members of NJ Local Consider Going Online Enclosed is my check to help you 827 about the new federal legislation get closer to your 2014 goal. I hope that was introduced in both the U.S. Did you know that we made our all members will be financially able to Senate and House to protect our earned online giving feature a lot easier? If contribute this year and many years retiree healthcare benefits. you have never used our online ahead. * * * donations feature, we encourage It’s a sad situation that we who On September 3, board members you to do so today. Donating online worked so many years, now have to Jack Cohen, John Hyland and Tom is a safe, fast and easy way for you fight to keep the promised benefits we Steed were invited to represent the to give, and less expensive for our Association at the New York City St. earned. organization to process. Go to Patrick’s Cathedral Labor Day Mass. I wish you continued success in www.belltelretirees.org and click * * * representing us, and hope many wins on:  are in our future. Best Regards, DONATE NOW M.M. * * * Congratulations on your great We are always very appreciative of progress in advocating for pensioners your support and contributions. as seen by the Wyden/Harkin letter to Donations are our only source of the various federal agencies. You may revenue. When combined with the certainly continue to count on my volunteer hours of your board, they financial support to both of your make this a very significant and per - organizations and whatever local sup - sonal commitment to protecting all port you deem appropriate here in Verizon retirees’ retirement income Massachusetts. – W.B. Don Kaufmann’s dog Friskie. security. 12 BellTel Retiree Winter 2014-2015 BUSINESS NEWS starting to see in the area of video delivery Verizon Drops “Throttling” and machine to machine. Our cash gen - Its Unlimited Data Users eration remains strong and last month we n our last newsletter, we reported Verizon Reports Strong 3rd were pleased to announce board approval that Verizon planned to “throttle” Quarter of a quarterly dividend increase for the data for its users with the highest eighth consecutive year.” I erizon Communications released level of wireless broadband consumption its third quarter fiscal results for Verizon reported a dividend of 89 because of “network optimization.” V2014. Verizon reported $31.6 cents per share, an increase of 15.6% Ve rizon Wireless has been using “net - billion in total operating revenues, a compared with the same period in 2013. work optimization” since 2011 for 3G 4.3% increase from third quarter 2013, data users, slowing down data speeds for because of an increase in data usage. Verizon And AT&T Are the heaviest users when they are connect - For Verizon Wireless, the company Looking To Unbundle ed to cell sites experiencing high reported total revenues of $21.8 billion. Cable Packages demand. Verizon Wireless added 1.53 retail net n September, at an investor's confer - Customers were not happy about this connections. The company added ence, Lowell McAdam discussed and neither was FCC Chairman Tom 457,000 post- paid phones and 1.1 mil - IVerizon's forthcoming internet TV Wheeler. He said in a letter to Verizon lion post-paid tablets. based service that could feature a la carte that he is “troubled” by the announce - Total revenue for Verizon’s Wireline channels. ment. division was $9.6 billion in the third According to Nielsen, today, 5 million Mr. Wheeler called it “disturbing” quarter 2014, down .8%. Total FiOS households get their television solely that Verizon would base its network revenues grew to $3.2 billion or 13.4%. from the Internet, up from 2 million in management “on distinctions among its This quarter, Verizon added 162,000 2007. customers’ data plans, rather than on FIOS Internet Connections and 114,000 Mr. McAdam explained that the days network architecture or technology.” new FIOS Video connections. During of the bundle tv-packages are coming to He also says “I know of no past Com - this quarter Verizon moved 55,000 cus - an end. “No one wants to have 300 chan - mission statement that would treat as tomers to fiber. nels on your wireless. Everyone under - “reasonable network management” a Lowell McAdam, Chairman and stands it will go to a la carte. The ques - decision to slow traffic to a user who has CEO said, “We have great confidence tion is what does that transition look paid, after all, for unlimited service.” heading into the fourth quarter, as Veri - like.” He added that he thinks that the He asked that Verizon explain their zon continues to deliver consistently ones who want to keep TV as it is now rationale in treating their customers dif - strong operating and finance results. We will be “the ones who’ll be left behind.” ferently, why Verizon Wireless was see continued, healthy customer demand He also believes that 20 customized extending speed reductions from its 3G for wireless and broadband services and channels available on the internet “would network to its more efficient 4G net - we are encouraged by the growth we are be terrific.” work and how Verizon Wireless could justify the policy with its continuing obligations under 700 MHz C Block ProtectSeniors.Org open platform rules and under the Com - www.protectseniors.org mission’s 2010 open internet rules. We are fighting to keep our earned retirement benefits secure: The plan was supposed to begin in HEALTHCARE PENSIONS SOCIAL SECURITY MEDICARE October but after this note from Chair - man Wheeler, Verizon decided against HeLp us By: u Become a Grassroots Leader it. u signing on and contributing at u Respond to "write to Verizon said in a statement, “We’ve www.protectseniors.org Congress" requests. greatly valued the ongoing dialogue over u Receive timely updates u Take part in our surveys the past several months concerning net - Call: 800-398-3044 /email: [email protected] work optimization and we’ve decided Donate Today to: ProtectSeniors.Org, P.O. Box 476, Cold Spring Harbor, NY 11724 not to move forward with the planned We appreciate your financial and grassroots support. ProtectSeniors.Org is a 501(c)4 organization. Contributions are NOT tax deductible. implementation of network optimiza - PAID FOR BY PROTECTSENIORS.ORG tion for 4G LTE custo mers on unlimit - ed plans.”